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Original poster

tax issues with being a second employer

30 replies

fasterthanthewind · 31/07/2013 21:46

I've just been talking to a lovely lovely (sounding!) nanny, about a 2-day/week job. She already nannies for another family, also 2 days/week, and has done so for a year.

I just looked at one of the nanny tax calculator things, and it said that if we paid her 200/week, it'd cost us 223 if we were her first employer, but 284 if we are her second.

Is it normal for the second employer to swallow the WHOLE of the tax bill? And if it isn't, then how on earth does this get broached, given that it's obviously not in the first family's interests to pay any extra?

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maja00 · 31/07/2013 23:02

It's really not in her best interest to be paid cash in hand - if she ever needs to claim benefits, take maternity leave or get a mortgage she will be screwed.

Original poster
fasterthanthewind · 31/07/2013 23:00

I haven't agreed anything with her at all - I've not even met her! Good advice - I'll explain what we can offer, and then she can decide whether or not she takes it.

I don't think she will.

What urks me is that it's clearly clearly in her best interest to be paid under the table - and I'm sure there are lots of people who are more than willing to do that. And given that it'd 'save' over £3000 in tax each year, I can see why.

Thank you for your advice: I wouldn't have thought of it like this otherwise.

OP posts:
nannynick · 31/07/2013 22:30

As others have said, do NOT agree a Net salary. Agree a gross wage, then when they start this job follow New Employee No P45 which will probably result in BR cumulative taxcode for this job. Your nanny payroll company can explain more about how this works, if you are using a payroll company.

Using MrAnchovy's PAYE Calculator 2013/14 with taxcode entered as BR, £200 per week Gross will attract Employers NI of £377.

If you have already agreed a Net salary with the nanny, then contact a nanny payroll company for advice.

maja00 · 31/07/2013 22:23

Her tax isn't really something for you to worry about - pay her a gross wage.

OutragedFromLeeds · 31/07/2013 22:21

It's not your tax bill it's hers. Agree a gross wage like you're supposed to and this wouldn't be a problem.